In brief
- Bitcoin fell nearly 3% after a U.S. appeals court temporarily reinstated Trump’s tariffs, reversing a trade court decision that declared them unconstitutional.
- U.S. spot Bitcoin ETFs snapped a 10-day streak of inflows, with $347 million in net outflows Thursday, the worst since March 11.
- Analysts say the sell-off reflects institutional repricing, not panic, as investors adjust to policy risk and broader macroeconomic uncertainty.
Bitcoin slipped almost 3% Thursday as the U.S. appeals court temporarily revived President Donald Trump’s controversial tariffs on Thursday, just hours after a trade court struck them down as unconstitutional.
“The judgments and the permanent injunctions entered by the Court of International Trade in these cases are temporarily stayed until further notice while this court considers the motions papers,” the U.S. Court of Appeals for the Federal Circuit wrote in its May 29 ruling.
The stay, which consolidated two ongoing appeals, gives the government room to fight the U.S. Court of International Trade’s earlier decision that struck down tariffs enacted under the 1977 International Emergency Economic Powers Act.
“If allowed to stand, this would completely destroy Presidential Power — The Presidency would never be the same,” Trump posted on Truth Social following the trade court’s decision.
The legal back-and-forth over Trump’s tariff imposition is injecting uncertainty into markets already grappling with inflation, interest rate swings, and geopolitical instability.
Bitcoin sank 2.7% to a daily low under $106,000, though remains up 11.5% over the past month, per CoinGecko. On Myriad, the decentralized prediction market platform launched by Decrypt's parent company DASTAN, sentiment was broadly neutral, with 51% predicting Bitcoin would remain over $106,000 by June 1.
Ethereum (ETH) slid 3.8% to $2,621, while Solana (SOL), XRP (XRP), and Binance Coin (BNB) all posted similar declines in the last 24 hours.
“This recent court ruling is just another brick in the wall of economic uncertainty,” Tracy Jin, COO of crypto exchange MEXC, told Decrypt.
“Crypto’s softness right now is less about a drop in demand and more about it all just being uncertainty-adjusted—policy risk, geopolitical tension, and over-the-top positioning,” she noted, pointing to the downturn across Bitcoin and major altcoins.
Bitcoin ETF flows turn negative
Alongside the appeals court intervention, U.S. spot Bitcoin ETFs ended a 10-day streak of net inflows that had brought in $4.26 billion.
On Thursday, the 11 funds saw almost $347 million in net outflows, the worst single-day exit since March 11, per Coinglass data.
Fidelity’s FBTC recorded the largest net outflow at $166.3 million, followed by GBTC (with $107.5 million outflows) and ARKB ($89.2 million).
BTC VEGAS, TARIFFS, ETH SZN? - FOMO HOUR EP367
BTC VEGAS, TARIFFS, ETH SZN? - FOMO HOUR EP367 FOMO HOUR brings you the biggest daily news, updates and events from inside and outside of the crypto and macro spheres! Join hosts Farokh, Mando and Tyler as they cover some of the biggest topics at present with some of the biggest names in the ecosystem. Streaming live 5 days per week, Monday to Friday 10:00 AM EST to 11:00 AM EST on YouTube and X. JOIN YEET = https://yeet.com/register?aff=fomohour PLAYLIST = https://www.youtube.com/playlist?list=PLGSgoImPFTiVpkHhLXF78cE_Z3uG7VNGL PODCAST = https://x.com/i/spaces/1kvKpydgqMQGE Links: https://linktr.ee/fomohour https://twitter.com/fomohour https://www.rug.fm/ https://x.com/rugradio Hosts: https://twitter.com/farokh https://twitter.com/rektmando https://twitter.com/tyler_did_it Myriad: https://myriad.markets https://x.com/MyriadMarkets #bitcoin #crypto #podcast
Jin argued that the major spot Bitcoin ETF outflows "should not be perceived as a panic event, but rather an institutional repricing happening in the real-time."
Only BlackRock’s IBIT posted an inflow on Thursday, adding $125 million to extend its streak to 34 consecutive trading days. IBIT has now pulled in nearly $4 billion over the past two weeks, per data from Farside Investors.
"The important thing to see this dip is in the context of the broader economy," Ganesh Mahidhar, investment professional at Further Ventures, told Decrypt, adding that, "ETF flows are primarily funded by retail, and this is a reflection of the retail sentiment."
Cantor to Unveil a New Bitcoin Product—With a Little Gold Insurance
Wall Street giant Cantor Fitzgerald is debuting a new Bitcoin-focused fund with downside protection based on the price of gold, the financial services firm announced Thursday. Speaking later in the day at the Bitcoin 2025 conference in Las Vegas, Nevada, Cantor CEO Brandon Lutnick said that by balancing Bitcoin's volatility with the precious metal's relative stability, the fund would address investors fearful of the cryptocurrency’s frequent dramatic price drops. "We are launching a gold-backe...
Mahidhar said policy uncertainty was dampening capital flows into risk assets but added that the outlook could shift quickly if clarity returns.
The analyst expects the sentiment to recover once trade tensions stabilize, noting that, “there is expectation among firms for this debate to settle soon around an equilibrium of either low tariffs or no tariffs, looking at a reasonable uptick in asset prices in the medium term.”
